Balaji Galvanising Industries Ltd. कंपली की लेखा नीति

Mar 31, 2014

A. Accounting Convention: The accompanying financial statements are prepared under the historical cost convention on accrual basis of accounting in accordance with generally accepted accounting principles to reflect the financial position & results of operation. These financial statements have been prepared on a going concern basis, which assumes the realization of assets and satisfaction of liabilities in the normal course of business.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the revised Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the company has ascertained its operating cycle as 12 months for the purpose of current - non current classification of assets and liabilities.

b. Fixed Assets: Fixed Assets are stated at their original cost net of cenvat, comprising of purchase price and other attributable cost of bringing assets to working condition for their intended use less accumulated depreciation and impairment loss, if any.

c. Depreciation: Depreciation on Fixed Assets is provided on straight line method at the rates and in the manner as prescribed in Schedule XIV of the Companies Act, 1956 on prorata basis.

d. Impairment of Assets: The carrying amount of assets are reviewed at each balance sheet date to determine if there is any indication of impairment based on internal/external factors. An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value i.e. net selling price or value in use, whichever is higher. An impairment loss, if any, is charged to the statement of profit & loss in the year in which an asset is identified as impaired.

e. Inventories:

i. Raw Materials, Stores & Spares, Finished Goods and Work-in-process are valued at cost or net realisable value, whichever is lower. Closing Stock of Finished goods is inclusive of Excise Duty. Cost is determined using FIFO method.

ii. Scrap is valued at estimated Realisable value.

f. Sales: Sales are net of Sales Tax.

g. Cenvat: Cenvat claimed on Capital Goods is reduced from the cost of Plant & Machinery. Cenvat claimed on purchase of raw material is reduced from the cost of such material.

h. Employee Benefits:

Defined Contribution Plans: Provident Fund & E.S.I: Contribution to Provident Fund and E.S.I to appropriate authorities is made periodically and is charged to the statement of Profit & Loss on accrual basis.

Defined Benefit Plan: Gratuity is a defined benefit scheme and is accounted based on actuarial valuation at the balance sheet date, carried out once in three years by an independent actuary.

Short Term Employee Benefits: All employee benefits which are wholly due within twelve months of rendering the services are recognised in the period in which the employee rendered the related services.

i. Provisions, Contingent Liabilities and Contingent Assets: The Company creates a provision when there is a present obligation as a result of past events and it is probable that there will be outflow of resources and a reliable estimate of the obligation can be made of the amount of the obligation.

Contingent liabilities are not recognised but are disclosed in the notes to the financial statements. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources.

Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.

Contingent assets are neither recognised nor disclosed in the financial statements

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Mar 31, 2011

A. Accounting Convention: The accompanying financial statements are prepared under the historical cost convention on the accrued basis of accounting in accordance with generally accepted accounting principles to reflect the financial position & results of operation. These financial statements have been prepared on a going concern basis, which assumes the realization of assets and satisfaction of liabilities in the normal course of business.

b. Fixed Assets: Fixed Assets are stated at their original cost net of cenvat, comprising of purchase price and other attributable cost of bringing assets to working condition for their intended use less accumulated depreciation and impairment loss, if any.

c. Depreciation: Depreciation on Fixed Assets is provided on straight line method at the rates and in the manner as prescribed in Schedule XIV of the Companies Act, 1956 on prorata basis.

d. Impairment of Assets: The carrying amount of assets are reviewed at each balance sheet date to determine if there is any indication of impairment based on internal/external factors. An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value i.e. net selling price or value in use, whichever is higher. An impairment loss, if any, is charged to profit & loss account in the year in which an asset is identified as impaired.

e. Inventories:

i. Raw Materials, Stores & Spares, Finished Goods and Work-in-process are valued at cost or net realisable value, whichever is lower. Closing Stock of Finished goods is inclusive of Excise Duty. Cost is determined using FIFO method.

ii. Scrap is valued at estimated Realisable value.

f. Sales: Sales are net of Sales Tax.

g. Cenvat: Cenvat claimed on Capital Goods is reduced from the cost of Plant & Machinery. Cenvat claimed on purchase of raw materials is reduced from the cost of such materials.

h. Employee Benefits: Defined Contribution Plans: Provident Fund & E.S.I: Contribution to Provident Fund and E.S.I to appropriate authorities is made periodically and is charged to Profit & Loss statement on accrual basis.

Defined Benefit Plan: Gratuity is a defined benefit scheme and is accounted based on actuarial valuation at the balance sheet date, carried out once in three years by an independent actuary.

Short Term Employee Benefits: All employee benefits which are wholly due within twelve months of rendering the services are recognised in the period in which the employee rendered the related services.

i. Provisions, Contingent Liabilities and Contingent Assets: The Company creates a provision when there is a present obligation as a result of past events and it is probable that there will be outflow of resources and a reliable estimate of the obligation can be made of the amount of the obligation.

Contingent liabilities are not recognised but are disclosed in the notes to the financial statements. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources.

Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.

Contingent assets are neither recognised nor disclosed in the financial statements

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Mar 31, 2010

A. Accounting Convention: The accounts are prepared en historical cost basis as a going concern and are consistent with generally accepted accounting principles,

b. Fixed Asset: Fixed Assets are stated at their original cost net of egnvat, comprising at purchase price and ether attributable cost of bringing assets tc working condition for their Intended use less accumulated depreciation and Impairment loss, if any.

c. Depreciatlon: Depreciation on Fixed Assets is provided on straight line .method at the rates and in the manner as prescribed in Schedule XIV of the companies Act, 1956 on prorata basis.

d. Impairment of Assets: The carrying amount of assets are reviewed at each balance sheet date to determine if there Is any indication of Impairment based on internal/external factors. An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value I.e net selling price or value in use, whichever Is higher. An impairment loss, if any, is cnarged to profit & loss account In the year in which an asset is identified as impaired,

e. Inventories:

i. Raw Materials, Stores & Spares, Finished Goods and Work-in-process are valued fit cost or net realisable value, whichever Fs lower. Closing Stock of Finished goods Is Inclusive of Excise Duty. Cost Is determined using FIFO method.

ii, Scrap is valued at estimated Realisable value,

f Sales: Sates are net of Sales Tax.

g) Cenval Cenvat claimed on Capital Goods is reduced from the cost of Plant & Machinery. Cenvat claimed on purchase of raw materials is reduced from the cost of such materials,

h) Employes. Benefits; Defined Contribution Plans : Provident Fund & ESI: Contribution to Provident Fund and B.S.I to appropriate authorities is made periodically and is charged to Profit & Loss statement on accrual basis.

Defined Benefit Plan; Gratuity Is a defined benefit scheme and Is accrued based on actuarial valuation at the balance-sheet date, carried out by an independent actuary.

Short Term Employee Benefits: Alt employee benefits which are wholly due within twelve months of rendering the services are recognised In the period in which the employee rendered the reiated services

i. Provisions, Contingent Liablilties and Conil ngent Assets: The company creates a provision when there Is a present obligation as a result of past events and U is probable I hat there will be outflow of resources and a reliable estimate of the obligation can be made of the amount of trie obligation

ii.Contingent liabilities are not recognised but are disclosed in the notes to Uie financial statements. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Provisions are reviewed at each.balance sheet date and adjusted lo reflect the current best estimate, If it is no longer probable that the outflow of resources woufd be required to satlie the obligation, the provision is reversed.

Contingent assets are neither recognised nor disclosed In the financial statements